Institutional Arrangements
The Reserve Bank of India outlines guidelines for relief measures by banks in areas affected by natural calamities. The institutional arrangements include:
- Meeting of District Consultative Committee
- Special SLBC Meeting
- Proactive approach by banks
- Discretionary powers to Divisional/Zonal Manager of banks
- Identification of beneficiaries
- Coverage and priorities
Agricultural Loans
The guidelines for agricultural loans include:
- Identification of loss without insistence on proof
- Issuance of fresh loans and restructuring of existing loans, including:
- Consumption loans
- Fresh loans
- Restructuring of existing loans
- Other guidelines for providing conversion facilities
- Fast relief and scale of finance
Development Loans and Other Sectors
The guidelines also cover development loans, including investment costs, and terms and conditions such as guarantee, security, margin, and rate of interest. Additionally, the circular provides guidelines for artisans and self-employed persons, as well as small scale and tiny units.
Chat with the Master Circular:
Download: Master Circular – Guidelines for Relief Measures by Banks in Areas Affected by Natural Calamities